If you`re working with confidential information, you might be asked to sign a Non Disclosure Agreement (NDA). An NDA is a legal contract that prohibits you from disclosing sensitive or proprietary information to third parties. It`s a common practice in industries like technology, finance, and healthcare.
In India, a Non Disclosure Agreement needs to be executed on a stamp paper with a certain denomination, depending on the state in which it is being signed. A stamp paper is a type of legal document that serves as evidence for any agreement or transaction. It is a pre-printed document with a special watermark and serial number, which makes it tamper-proof.
The stamp paper system in India was introduced in 1899, and its primary purpose was to prevent fraud and forgery in legal documents. The value of a stamp paper varies from state to state, and it is determined by the state government. For example, in Maharashtra, a stamp paper for an NDA worth less than Rs. 5,000 is Rs. 100, while a stamp paper worth more than Rs. 5,000 is Rs. 500.
When drafting an NDA, it`s important to include the following details:
1. Definition of confidential information: This section should clearly define what information is considered confidential and what is not covered under the NDA. It should also specify how the information should be handled and protected.
2. Exceptions: There might be situations where the confidential information needs to be disclosed, such as in response to a court order or to a government agency. This section outlines such exceptions.
3. Term: The NDA should specify the duration of the agreement, which could be for a certain period of time or indefinitely.
4. Governing law: The NDA should identify the governing law that will be used to interpret the agreement in case of any disputes.
5. Signatures: The NDA should be signed by both parties involved.
Once the NDA is drafted, it needs to be printed on a stamp paper, signed, and stamped by a notary or advocate. The document should be kept safe and confidential, and it is advisable to keep multiple copies for future reference.
In conclusion, a Non Disclosure Agreement is a critical document that protects sensitive information from unauthorized disclosure. By executing an NDA on a stamp paper, you ensure its legal validity and adherence to state regulations.